Every business owner would love to have a successful business model. In fact most successful business understand the importance and essence of having a performing business model especially during economic hardships.
Before anything else a good business owner must know what a business model really is. In this day and age a good business model tells you how you operate your business and how much revenue you will in turn generate. Simply put a business model not only should give you a key analysis on the projection of your business but also should give you a clear understanding on how to survive and compete within your market.
Next up the pillars to your business model are detailed as follows:
a- Product Value
c- Business Development
d- Profit Margin
Product Value really determines your product; it’s value to your consumer and in turn the overall cost and man hours taken to create your product including market research. Ultimately the concept of supply and demand kicks. Can you compete in a viable market or are you a niche business?
Fulfillment really is the process or method in delivering the product in consumer hands. The aspects of the delivery turn around time and overall customer satisfaction to this element is key. Are you satisfied with your fulfillment process or could you improve the process?
Business Development is the process of developing relations to bringing in more business to your lead funnel. The art of lead generation and creating new business falls under this category. At this margin you need evaluate if you can increase your lead opportunities?
Profit Margin really comes down to the net profit margin after all expenditure. This formula is your blueprint to success. It is essential to determine your profit margin so you know what you need to do to hit your projections and essentially create your fiscal year targets. Do you know your profit margin within your business today?
At the end of the day a good business plans makes a successful business even better!